Inclusive Profit

Early-stage investors at microfinance institutions are reaping multibaggers

Davis Golding, chief investment officer at US-based Equator Capital Partners recently sold a 3.13% stake (1,000,000 shares) in microfinance player Satin Creditcare Network for Rs.37.63 crore through ShoreCap II. Post the sale, ShoreCap II’s holding is down to 9.1%. Equator manages the ShoreCap family of funds which actively invests in inclusive financial services entities. Through ShoreCap International, Equator had earlier invested in Hyderabad-based MFI Bhartiya Samruddhi Finance. Equator infused growth capital of Rs.21.9 crore into Satin in 2010 when the MFI industry was coming to terms with the after-effects of Andhra Government’s clampdown on micro-finance institutions.